Student loan debt in America is the largest form of any debt, other than home mortgages. Many student loan borrowers are defaulting. If nothing is done, this could be the next bubble to burst, propelling the economy into another recession.
It doesn’t help that overall earnings for young people is substantially lower than past generations. With rising cost of living, the burden of student loans, and the reality of lower wages - recent graduates are struggling for the basics. It’s only a matter of time before more student loan borrowers default on their loans. Congress could do something about it, they could forgive student loan debt by passing the Student Loan Forgiveness Act.
Tell Congress to help reinvigorate the economy and simultaneously avert the next financial crisis - forgive all federal student loan debt and pass the House Student Loan Forgiveness Act.
Across the U.S., student debt is holding an entire generation back from life’s major milestones; from buying a first home to starting a family. Some states are starting to take notice. Maine is one of the first U.S. states trying to help student loan borrowers. Over one-third of Maine’s population is at or near-retirement. In an effort to attract young Mainers who’ve left the state for higher paying jobs elsewhere - while also reinvigorating the state’s economy - Maine is giving student borrowers a second chance. In the state’s new program, the state will help recent grads pay off their student loan debt through a state-tax reimbursement, ranging from $3,500 to $5,000 a year over a ten-year period. States shouldn’t have to go it alone. Tell Congress to forgive federal student loan debt.
Large student loan burdens have meant graduates aren’t investing in themselves or the economy like past generations of Americans. It’s easy to see why. Forty-four million Americans are carrying the burden of student loan debt, amounting to a whopping $1.5 trillion. For perspective, America’s credit card debt was $1 trillion in 2017. Only one-third of student loans are in repayment, the rest has essentially been put on hold or is in default. Across the U.S., 1 million Americans default on their student loans every year. By 2023, 40% of borrowers will default on their student loans - pushing us all into the next recession and shrinking the middle class.
Whether or not you have student loan debt, student loan defaults will devastate the economy - hurling us all into the next recession. Tell Congress to prevent the next recession before it happens, forgive student loan debt.
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